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Jun 30, 2022
Sensient Q2 2022 Earnings Report
Sensient reported double-digit growth in reported and adjusted revenue, operating at or above its 2022 guidance.
Key Takeaways
Sensient Technologies Corporation reported a consolidated revenue of $371.7 million in the second quarter of 2022, compared to $335.8 million in the second quarter of 2021. The reported operating income was $55.2 million, and the reported diluted earnings per share was 92 cents.
Consolidated revenue increased to $371.7 million compared to $335.8 million in the prior year.
Operating income increased to $55.2 million compared to $35.8 million in the prior year.
Diluted earnings per share increased to 92 cents compared to 61 cents in the prior year.
The company is reconfirming its expectation for 2022 full year GAAP diluted earnings per share to grow at a high-teen growth rate compared to the Company’s 2021 reported GAAP diluted earnings per share of $2.81.
Sensient
Sensient
Sensient Revenue by Segment
Sensient Revenue by Geographic Location
Revenue by Segment
Flavors & Extracts Revenue
CapyFin.comColor Revenue
CapyFin.comAsia Pacific Revenue
CapyFin.comRevenue by Geographic Location
Asia Pacific Revenue
CapyFin.com Forward Guidance
Sensient is reconfirming its expectation for 2022 full year GAAP diluted earnings per share to grow at a high-teen growth rate compared to the Company’s 2021 reported GAAP diluted earnings per share of $2.81.
Positive Outlook
- The Company now expects 2022 revenue to grow at a high single digit rate in local currency compared to the Company’s 2021 adjusted revenue
- The Company is reconfirming its expectation for 2022 adjusted EBITDA and diluted earnings per share to grow at a high single- to double-digit rate in local currency compared to the Company’s 2021 adjusted EBITDA and the Company’s 2021 adjusted diluted earnings per share of $3.13.
- Segment operating income as a percent of revenue in the second quarter of 2022 rose to 15.9% for Flavors & Extracts Group.
- Segment operating income as a percent of revenue in the second quarter of 2022 was 20.0% for the Color Group.
- Segment operating income as a percent of revenue in the second quarter of 2022 rose to 20.7% for the Asia Pacific Group.
Challenges Ahead
- Foreign currency translation decreased revenue by approximately 3% and earnings per share by approximately 5% in the present quarter.
- The Company now expects full year 2022 earnings per share reported on a U.S. dollar basis to be impacted by approximately twenty-three cents of foreign currency headwinds based on current exchange rates.
- Lower volumes in Natural Ingredients were primarily a result of a limited supply of onion combined with strong 2021 demand.
- Foreign currency translation decreased segment revenue by approximately 3% and segment operating income by approximately 1% in the quarter for Flavors & Extracts Group.
- Foreign currency translation decreased segment revenue by 4% and segment operating income by approximately 5% in the quarter for the Color Group.
Revenue & Expenses
Visualization of income flow from segment revenue to net income